Facilitating the Adoption of Regulatory Impact Assessment (RIA) Framework in India

Facilitating the Adoption of Regulatory Impact
Assessment (RIA) Framework in India
August 21st, 2014
Deboshree Banerji, CUTS International
CUTS Project on RIA
Need for the project
Need to Assess Impact of Legislations
Why financial sector?
Key Activities
Expected Outputs
Expected Outcomes
About the Project
 Genesis of CUTS work on regulatory reform:
 India Competition and Regulation Report (2007 – 2013)
 Working group on Business Regulatory Framework: Knowledge Partner
 Draft Regulatory Reform Bill
 Objective: Enable the central government and certain regulatory
authorities to be in a position to adopt RIA framework for
improving economic governance in India
 Activity: Undertaking RIA in Insurance and Banking sectors
(Primary Laws)
 Time Frame: July 2014 – March 2016
About the Project (Contd…)
 Create evidence: Design and implement RIA tool
 Generate
demand: Highlight benefits, awareness and
advocacy programs
 Ensure supply: Focused training and capacity building
 Sectors: Banking and Insurance related primary laws
Need for the project
 Indian regulatory governance processes have become
 Stakeholders are not regularly consulted while policy
making, and there is no formal policy review mechanism.
 Resulted in a loss of investor confidence and barriers to
economic growth.
 RIA is an appropriate remedy for this situation
 participatory approach to assess impact of regulations
 determine costs and benefits
 select the most appropriate policy alternative
 Ensures greater clarity and predictability in regulatory process
Need to Assess Impact of Legislations
Key for Efficient Regulation – Striking the Right Balance
1. Independence
3. Predictability & Stability
4. Cost-effectiveness
1. Accountability
2. Commercial sensitivity
3. Adaptability
4. Detail - Oriented
Why Financial Sector?
 Inadequate access to financial services
 Lack of competitive neutrality
 Lack of objective clarity
 Accountability issues
Key Activities
 Constitution of National Reference Group
 Literature review and desk research
 Preliminary stakeholder surveys
 Two Focused group discussions for government/regulators
and industry
 Combined stakeholder forum
 Two national level advocacy seminars
 Four training/capacity building sessions
Expected Outputs
 Two Research Reports
 Customised RIA Toolkit
 Two policy briefs on sector specific recommendations
 Briefing paper on process and benefits of RIA
 Consolidated project report
 Newspaper Articles
Expected Outcomes
Advocate adoption of RIA framework by
 Central government
 Regulatory authorities
Cadre of individuals equipped to undertake
Thank You